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In world regions receiving direct foreign aid, beneficiaries of aid often lack the education required to remove themselves from poverty. Micro-lending refers to the initiation of small loans to the neediest of borrowers who are unable to secure traditional financing from financial intermediaries. In order for micro-lending to thrive as a viable alternative to traditional government aid, borrowers must not only receive a loan, but also an education in business to fully equip borrowers with necessary resources to establish and operate a prosperous business entity. The authors will argue for the provision of increased educational resources and discuss the disparities between the US model of education and that of third-world nations. Furthermore, the authors will prescribe steps to develop educational materials and train micro-credit borrowers to better guarantee the viability of microfinance.

Education & Entrepreneurship: Implications For Contemporary Microfinance